HIPC-Style Debt Relief Key For Poor Nations Hit By The Deadly Coronavirus

By Prudence Siabana

Former Finance Minister Felix Mutati says only a HIPC-style debt relief from international development partners can help poor nations hit by the deadly coronavirus such as Zambia to recover from its devastating economic effects.

The initiative for heavily indebted poor countries also known as HIPC-style provides debt relief and low-interest loans to cancel or reduce external debt repayments to sustainable levels, meaning they can repay debts in a timely fashion in the future.

Mr Mutati has told Phoenix News in an interview that as the country engages international development partners around debt restructuring and debt relief within the context of the coronavirus, there is need to add another conversation of a HIPC-style debt relief.

He notes that the Corona virus is already disrupting and affecting the lives of poor Zambians as it is slowing down economic activities.

Mr Mutati further says postponing repayment of the debt will not assure the recovery of the economy as the capacity is limited.

PHOENIX FM NEWS

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